MrThunder wrote:I am not sure if this relates to this thread but I had a similar issue with folders displaying incorrectly.What worked for me was deleting the .sublime-workspace file and then open the project again.

^ This. Thank you.

I can't tell what triggers this. Even a full system restart doesn't fix it but deleting the .sublime-workspace file and re-opening the project fixes it. Hopefully, till they figure out what's wrong and fix it.